Business plan- Number 1 Sportswear Company

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

Executive summery. 3

Business and its objectives. 5

Mission. 6

Business opportunity. 6

Market 7

Marketing segmentation. 7

Human resource. 8

Buying and production. 9

Premises and equipment 9

Financial forecasts. 10

Sources of finance. 11

Marketing analysis. 12

SWOT analysis. 12

Strength of the company. 13

Weakness of the company. 13

Opportunities. 14

Threat 14

Conclusion. 15

References. 16

 

 

 

 

 

 

Executive summery

This business plan is for our company (number 1 sportswear company). The company will majorly deal with sportswear as the line of production. The products that the company intends to produce can fetch high market both in Qatar and United Kingdom. The company can operate both in Qatar and UK but the specific location varies due to differences associated with football, pedestrian traffic, rent price per M2, competitors nearby, transportation for our products including the cost of transportation in these two regions. UK for instance, has the distinguished characteristics related to such aspects. In terms of food ball and pedestrian traffic, United Kingdom has various famous food ball clubs and departs of pedestrian traffic. The food ball project has been rumbling over the last few years. According to Hayes, and Venkatraman (2016), the country has Olympic associations for example the Scottish football association which is the first national association in the world. In terms of the rent prices in UK, the country has numerous affordable rooms available in the form of one bed room, 2 bed rooms and 4 bedrooms. The 1 bedroom costs about 325 euros, 2 bedroom costs between 395 to 750 euros, and 4 bedroom cost between 1300 euros to 1800 euros.

In relation to the competitors of sportswear Company, the company has a limited number of companies that specializes in production of sportswear. An Armorial manufacturer is the only common competitor in the line of sportswear. The region has numerous transport systems with modern trucks for carrying goods coupled with professional teams which offer storage and warehouse services. There are also some companies dealing with comprehensive services related to transportation of goods. The transport takes the shortest time possible and normally between 24 hours to seven days. The transport system includes the commercial and private transport, the express transport, the full transport and the general transport. In terms of the transport cost in the region, the trip cost between 33 to 110 euros and 17 to 27 euros depending on the distance covered.

The situation in Qatar also differs in terms of football, rent prices, competitors, transport system and cost and the level of environment.  In terms of football, there is presence of football association with men’s national teams where the oil workers organized the match in the year 1948. The attendants of the football games range between 2,000-10,000 people, depending on the popularity of the teams playing at the time. Some of the famous teams in this region include Qatar SC and Gharafa (Janda, Rotmann, Bulut,and Lenannder 2017). In terms of the rent prices and the rooms, there are rooms in the form of 1,2,3,4 bedroom apartments. The region has prestigious houses with beach access, marine view, and canal view. The prices of rent in this region keep on changing with season depending on the economic variation. Some of the areas in this region have fully furnished rooms furniture making them very expensive for most of the individuals. In terms of competitors, the companies with specialization in supply of sportswear include Casablanca trading company, Foot locker, Puma and Galaxy sport. This implies that establishing the company that produces sportswear is likely to be affected with stiff competition. The transportation system in this region however, the fare costs between 0.75 to 1 euros, 1 to 2.25 depending on the distance as supported by (Dai, and Chen 2017). The region is looking forward board areas in the transport system which will be very expensive to the individuals who wish to transport their goods. The existence of flights in the regions boosts the transport system, however, they are small sized and not capable of transporting large quantity of goods.

Of the two regions, UK and Qatar, our company will be located in UK. This is due to the favorable conditions in the area that will enable our business to thrive in this region. Our company will be called number 1 sportswear Company and it will deal majorly on the football jersey as the preferred product. Without considering the trends in the external market, the United Kingdom generally has several football fans who have are a staunch supporters of football in different ways. The region has several reputable and famous clubs where the production of jersey brands can be based on (Lim, and Winkenbach 2019). This implies that production of jersey using the football teams in this region will pave the opportunity to capture more customers compared to when the company is located in Qatar.

In number 1 sportswear company, we are looking forward to start high production program when the materials and the ready produced goods will be transported to various regions for use. The transport system in UK is therefore favorable for the progress of the company since there is numerous transport systems coupled with various companies that shape transport system in the region (Janda, Rotmann, Bulut, and Lenannder 2017). This makes the region a suitable place for allocation of the company compared to Qatar where the stable transport system is not yet established. There are also a few competitors, the companies producing football jersey in UK compared to Qatar where there are many companies specializing in such service. It therefore implies that allocating the company in UK which offers the opportunity to avoid unnecessary competitions. The ability of the individuals living in United Kingdom to afford the high prices of rents implies that they have stable economic systems compared to Qatar (McKeever 2016). This shows that there is a high purchasing power in this region that will favor the progress of the company.

Business and its objectives

The business that number 1 sportswear company intends to transact is the production of football jersey and supply to various customers allocated in United Kingdom and other targeted neighboring countries. The company will specialize majorly on the production of the football jersey in order to open the opportunity. The following are the objectives that will govern the operation of our company;

  • To promote customer satisfaction through provision of high quality jersey brands to over 90 percent of the customers within the first two years of the business operation
  • To respond to the trends of the consumers through continues assessment of the demands across the 100 percent of the already captured customers
  • To maintain the profitability of the company at around 80 percent through responding to the needs of the customers
  • To ensure continuous supply of products to the market by encouraging timely distribution of good to the targeted market markets

Mission

The mission of number 1 sportswear company is to produce and supply quality football jersey at affordable prices and to the satisfaction of customers.

Business opportunity

 

The decision to produce and sell football jersey in UK was arrived at after assessing all the possibilities and business opportunities in the region that are in line with our product are explored. It therefore implies that we will comfortably produce and sell different brands of jersey to common individuals both on UK and other parts of the world. In order to expand in supply of the products, we are looking forward to do further assessment and business screening in order to identify other areas where people can use our products before supplying them with the goods.

Market

The football jersey has its markets available across the globe. We are looking forward to make the football jersey for unisex. This implies that the product will be used by the individuals of different ages and sex. Due that, it will be possible to attract large number of customers (McKeever 2016). Since people love different colors, we are looking forward to adopt the colors and design.

Marketing segmentation

Our company will target three categories of customers. The customers that will be targeted include children, women and men of different parts of UK and other parts of the world.

Children – this include the individuals or kids between the age of 7 years and 14 years. They participate in football games and they enjoy putting on the brands of jersey provided in the market. Though the group of the individuals targeted here does not have sources of income, they often save some bonus which they can use in buying the jersey. They can also lure their parents to buy them such clothes. During the production of jersey, the brand for children will be made attractive and to the taste of children.

Men- this category of customers consist of male individuals of ages 18 years and above. These individuals have stable or moderate sources of income hence they are capable of purchasing the football jersey. They have different taste for the jersey products and football games. In producing jersey for this group of people the picture of the famous players will be used in making the jersey in order to enhance customer attraction (Islam 2016). The volume of the products supplied by the company will depend on the demand of jersey in UK and other parts of the world targeted by the products. Since most men enjoy watching football, the jersey will be made bearing the names of different teams in order to meet the requirement by all customers.

Women- this customer group targets the female individuals of ages 18 years and above. They also love football hence must be integrated among the targeted customers. The jersey for women will be made using colorations that are most preferred by them in order to promote their ability to purchase the products.

Human resource

The company will be managed by the teams of professionals of various qualifications. The company will employ accountants, production managers, marketing teams and the human resource personnel. The company will also be operated with the help of technical teams which include the engineers and quality managers. In order to get good machine operators for effective production, the new graduates will be evaluated and selected for the work depending on their innovative skills. The teams will be employed based on experience and professional qualifications. In order to ensure effective management of the company, the staffs recruited will be offered with continuous training to enhance their skills and ability to work diligently for the benefit of the company. We are also looking forward to apply the promotional practices as way of encouraging innovation and hard work among the members of the staff for the success of the company.

 

 

 

 

 

 

Buying and production

 

The materials used in the production of football jersey will be bought from the dealers available within the UK and the neighboring. The materials that will be used in the production of jersey include cotton, wool, ramie and silk. We will also make use of different colors and paints in order to ensure that the products are of different colors. During the production process, we will lay down some measures to ensure that the cost of production is lower in order to get more profits. The materials used in making the football jersey will influence the cost of the products, for example products made from the expensive material will be sold at elevated prices in order to cater for the expenses. The volume of production will be increased depending on the number of customers that have been captured.

Premises and equipment

 

We are planning to establish business premises in different parts of the United Kingdom and other parts of the world depending on how people will develop interest on the product. The offices will be built to hold the managers and the accommodation provided to the staff members of the company in order to ensure timelessness of the company operation. Some equipment will also be purchased for establishment of the company. The produced goods will be supplied to the market with the help of list of distributors. The company will construct the stores where the products are distributed by they are purchased by the retail shop owners and finally by the consumers. The following are the equipment that we expect to purchase for better operation of the company

Name of the equipmentNumberAnticipated cost
Applique scaling machine8£5340000
Attaching machine10£3450000
Cloth measuring machine3£120000
Cloth cutting machine3£28000
Garment machinery2£34000
Industrial sewing machine5£145670
Laundry dryers, paints, and other materialsunspecified£100900

 

Financial forecasts

 

Our company is seeking to obtain substantial loan and financial support from various organizations for the purpose of developing the jersey production company. The funds borrowed will cater for all the company expenses including the cost for launching the company and supplying the products to the market. The company projects a profit of over 86 million euros within the first two years of its operation. While looking forward to open more company branches after getting the adequate finances, it is assumed that the funds will be available on time and that the customers will not experience economic down turn at any point of company operation.

 

 

Sources of finance

 

In order to ensure effective management of businesses, the company will opt for various sources of finance. The money for starting and managing the business will be collected from the personal savings of the partners, loans from the bank, business credit cards, grants, money lending institutions and merchant or business cash advances. Other sources of finances that will be opted include invoice factoring, crowd funding and gift from other businesses. The table below shows the expected sources of money;

Sources of moneyAnticipated amount of money
Loans from the bank1260 euros
Partner’s contribution2450 euros
Money lending institutions346 euros
Business cash advances1268 euros
Invoice factoring2340 euros
Crowd funding1789 euros
Gift from other business300 euros

 

Marketing analysis

Most of the individuals have developed interest on the use of football jersey in the different parts of the globe. They get the products through the use of online shopping platforms where they can identify and purchase any trending football jersey (Dai, and Chen, 2017). The products are purchased through the e-bay and other online shops. The customers targeted by most of the companies include men, women and children since they have varied taste for the products.

The chart below shows the market analysis for both customers

SWOT analysis

SWOT analysis refers to the tool used in determining the ability of the company to succeed through examining its potential for success in terms, strength, weaknesses, opportunities and threat. By establishing the company, we intend to start the company that operates within the cloth line by providing the football jersey that can be used by both men and women. The football jersey will be produced while paying attention to different colors and designs. Number 1 sportswear company is looking forward to sell the football jersey both in United Kingdom and different parts of the world.

 

 

 

Strength

ü  Strong jersey brands

ü  Good customer service

ü  Strong human resource

ü  Concentrating on the research to develop the brand

Weaknesses

ü  Lack stable strategy

ü  Insufficient funds

ü  Long time for planning

ü  Low reputation of the company

Opportunity

ü  Good transport system within the country

ü   Various transport options within the country

ü  Emergence of technologies

Threat

ü  High tax rate

ü  Changes in economic status

 

Strength of the company

The strongest point of the company will be attributed to the quality of employees, the economic status of the customers, and transport system and quality production of goods. It permits the analysis of our business ideas in depth, compare the idea of our competitors and open the opportunity for growth. The qualified staffs will facilitate efficiency production and marketing process. What we can do best is offering on-job trainings and motivational practices in on order to build on innovation skills of the workers for the benefit of the company which will ensure that the company provides quality goods and services that surpass that other companies provide. We will also purchase the numerous and high quality machines for efficient production and maintenance of quality football jersey.

Weakness of the company

One of the weaknesses of our company is that it is just yet to start hence it has no reputation compared to the existing company. It will therefore have to take time before we begin to get more profit. We will however work to build the reputation of the company. The company does not have sufficient funds to carry out the stipulated programs within the set schedule. The management teams of the company will however deal with the financial crisis of the company by mobilizing finances. Mobilizing the finances will aid the company in competing the multibillion companies that offer the same globe (Bhuian, Al-Balushi, and Butt 2018). Since the company requires the competent staffs the recruitment exercise will take significantly long duration of time which might delay the operation of the company. In order to speed up the operation process, the human resources will be contacted for easy identification of the potential staffs.

Opportunities

Since majority of the individuals in United Kingdom and other parts of the world, opening number 1 sportswear company will be the best opportunity to take advantage of the existence. There is increasing love for football hence production of the football jersey will enable the company to take advantage of the available new trends and the positive legal changes like policy on low transport cost. The company will be able to ferry the new football Jersey brands to various designations for easy access by the customers. There is financial support by the government for the companies dealing with football jersey and will help the company implement most of its strategies. The competition within this region is generally weak hence the company will allow people to do shopping across the geographical boundaries giving room for expansion of business and construction of many branches.

Threat

Like any other business, our company will face some of the threats. One of the obstacles we will face is the increased tax rates which will consume the finances of the company thereby hindering the expansion through opening of different branches. The other threat is changes in economic status of the targeted buyers. This will affect the purchasing power of the customers hence leading to the failure of the company when our competitors that existed before to take over the market. Since there are other companies offering the sportswear, some of the manufacturers are likely to copy our brands leading to confusion among the costumers and reduction in profit. We will therefore lay down some measures to ensure that our design is not copied by any company as a way of keeping our customers and profits realized by the company and to adapt to changes in the legal standards that affect the spread of the business.

Conclusion

In a nutshell, we are working towards ensuring that our company offer the best of the brands and respond to the needs of the customers. In the next few years of the company operation, we will initiate research as a way of finding out the mechanisms for improving the business operation and gaining more profit. Investing in the technology and human resource development will forever remain our priority as we continue to explore the global market and promoting quality production and supply of the football jersey required by the customers.

 

 

 

 

 

 

 

 

 

 

 

 

References

Bhuian, S.N., Al-Balushi, M. and Butt, I., 2018. Antecedents and consequences of customer loyalty in Qatar. Journal for Global Business Advancement11(1), pp.41-63.

Dai, X. and Chen, K.C., 2017. Examining Antecedents of Brand Loyalty on Sportswear: An Empirical Investigation of University Students in Hong Kong. Int’l J. Soc. Sci. Stud.5, p.87.

Hayes, S.G. and Venkatraman, P. eds., 2016. Materials and technology for sportswear and performance apparel. Boca Raton, FL: CRC Press.

Islam, J., 2016. Consequences of Disdaining from a Business Continuity Plan. An Example: XYZ Ltd.

Janda, K.B., Rotmann, S., Bulut, M. and Lenannder, S., 2017. Advances in green leases and green leasing: evidence from Sweden, Australia, and the UK. In Proceedings of ECEEE Summer Study (Vol. 2, pp. 349-358). European Council for an Energy Efficient Economy (ECEEE).

Lim, S.F.W. and Winkenbach, M., 2019. Configuring the Last-Mile in Business-to-Consumer E-Retailing. California Management Review61(2), pp.132-154.

McKeever, M., 2016. How to write a business plan. Nolo.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

 

 

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